SailPoint 2026 Q3 Earnings Beats Expectations with 39.5% Net Loss Reduction

SailPoint (SAIL) reported fiscal 2026 Q3 earnings on Dec 10, 2025, surpassing revenue expectations and raising its ARR guidance. The company’s revenue grew 19.8% year-over-year to $281.94 million, while its net loss narrowed by 39.5% to $35.98 million. Management increased full-year ARR guidance to $1.122 billion, reflecting confidence in cross-sell momentum and product innovation.

Revenue

Subscription revenue, the largest component, surged to $266.16 million, driven by SaaS at $155.96 million and term subscriptions at $65.11 million. Maintenance and support revenue totaled $37.96 million, while other subscription services added $7.13 million. Perpetual licenses contributed $41,000, and services and other revenue reached $15.74 million. Total revenue grew 19.8% year-over-year, underscoring robust demand for SailPoint’s identity security solutions.

Earnings/Net Income

SailPoint narrowed its net loss to $35.98 million in Q3 2026, a 39.5% reduction from $59.42 million in Q3 2025. Earnings per share (EPS) improved to a loss of $0.06 from $2.67, representing a 97.8% year-over-year improvement. This significant reduction in losses highlights the company’s progress toward profitability.

Post-Earnings Price Action Review

The strategy of buying SailPoint shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate performance but underperformed the benchmark. The strategy achieved a 1.10% return, trailing the benchmark by 11.97%, with a CAGR of 1.34% over the past three years. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.02, indicating a low-risk profile with minimal losses during market downturns.

CEO Commentary

Mark McClain, CEO, highlighted SailPoint’s Q3 2026 milestone of surpassing $1 billion in ARR, driven by cross-sell growth in Machine Identity, Agent Identity Security, and Data Access solutions. He emphasized the shift toward real-time adaptive identity security and the value of SailPoint’s unified platform integrating identity, data, and security intelligence. McClain underscored innovation as a key driver, including product launches at the Navigate conference focused on real-time governance and SOC integration, and expressed confidence in the company’s market position amid rising digital threats.

Guidance

SailPoint raised FY2026 ARR guidance to $1.122 billion (28% YoY growth), with Q4 ARR of $82 million (30% YoY). Full-year revenue guidance stands at $1.069 billion (24% YoY), with Q4 revenue of $292 million (22% YoY). Adjusted operating margin is expected at 18% for FY2026 and 20.2% for Q4, with adjusted EPS of $0.23 and $0.09, respectively. CFO Brian Carolan noted strong pipeline diversification, 114% net revenue retention, and margin expansion from disciplined execution, emphasizing confidence in durable growth and long-term shareholder value.

Additional News

Recent news highlights SailPoint’s stock price volatility despite strong earnings. Shares fell 4.8% premarket after the Q3 report, despite beating revenue forecasts and raising guidance. CEO Mark McClain attributed the decline to market skepticism about long-term growth sustainability. Additionally, the company announced the Savvy acquisition, enhancing its Accelerated Application Management capabilities. The deal, part of SailPoint’s strategy to expand its identity governance offerings, is expected to accelerate cross-sell opportunities. Lastly, management reiterated confidence in its flex licensing model, which simplifies customer adoption of new solutions.